FTC Safeguards Rule Compliance Services

What is the FTC Safeguards Rule Update?

While the FTC Safeguards Rule isn’t new (It was originally released in 2003.), it did receive substantial updates in 2021. These updates were designed to help covered organizations keep up with the rapid evolution of modern technology. The original deadline for FTC Safeguards Rule compliance was December 9, 2022. However, the final deadline was extended by six months in the latest FTC Safeguards Rule update, and as of now, the deadline for FTC Safeguards Rule compliance is June 9, 2023. 

What Does the New FTC Safeguards Rule Require? 

According to the FTC’s Safeguards Rule Information Page:  

“The Safeguards Rule applies to financial institutions subject to the FTC’s jurisdiction and that aren’t subject to the enforcement authority of another regulator under section 505 of the Gramm-Leach-Bliley Act, 15 U.S.C. § 6805. According to Section 314.1(b), an entity is a “financial institution” if it’s engaged in an activity that is “financial in nature” or is “incidental to such financial activities as described in section 4(k) of the Bank Holding Company Act of 1956, 12 U.S.C § 1843(k).” 

How do you know if your business is a financial institution subject to the Safeguards Rule? First, consider that the Rule defines “financial institution” in a way that’s broader than how people may use that phrase in conversation. Furthermore, what matters are the types of activities your business undertakes, not how you or others categorize your company.” 

 

Simply put, if you are an organization that handles customer financial data, but aren’t a bank, you are probably covered by the FTC Safeguards Rule and must show compliance to avoid business disruption and fines.

Kroll understands that every organization has its own unique needs. This is why Kroll offers three different FTC Safeguards bundles, achieving the “right sized” offering for every organization that needs to satisfy the requirements. 

Kroll’s “Right Sized” FTC Safeguards Rule Compliance Bundles  

Kroll’s FTC Safeguards Rule bundles are built to take the pain and confusion out of this new set of requirements. By offering three different levels of engagement, Kroll enables covered organizations to achieve compliance with a package that fits their needs. 

If your organization handles customer financial information, then you are likely to be covered under the FTC Safeguards Rule. Thanks to Kroll’s extensive background in compliance and financial engagements along with our deep expertise in cybersecurity and IT compliance frameworks, we have the scalable solution for your organization.